Debt management plan help

Thesourgrape

I am currently on a debt management plan with step change but stupidly I've taken out extra credit, what is the best thing to do? Start again with another company or just call and ask if these can be added on? Is it even possible to add more debts to the existing plan, new debt total just over 3000 i feel so ashamed calling them can't believe I've actually go myself in to this situation 

Brie

Don't beat yourself up about this.  It's happened to many of us, often repeatedly!!  

If you're not ready to talk to stepchange you could post something here about the overall situation.  Maybe start with the statement of accounts (SOA) that you'll find on one of the top stickies. You've no doubt done something similar with stepchange so you just need those figures and then update them based on your recent bank statements.  Then post it back and we can try to help you find out where you went astray.

No debt solution will work unless you can see where the wheels are falling off the wagon.  Address those and the rest should tick along.

Alternatively - you could just tell the new creditor that you've come unstuck and can only afford £X a month.  

Another alternative is to file a complaint with the new creditor that they gave you credit when it should have been obvious to them that you were struggling financially.

sourcrates

Running up new debt suggests that your DMP may not be affordable to you, its no great obstacle to add a new debt to a DMP, Stepchange will give you the benefit of the doubt once, but not twice.

Keep in mind DMP`s are an informal solution, so there are no real rules, just goodwill if you are using a 3rd party to make payments.

If all else fails you can do it yourself, any particular reason why the new credit was needed?

thelibrarian11

I was like this for years, this is what kept me in a cycle of debt for so long. I thought I had to give everything to Stepchange and kept nothing for emergencies or treats, then got into more debt to pay for them. I should have paid less off the debt over longer, and kept more of my money for myself in a pot, because nobody really cares I've got a pot and I don't have to tell anyone which I didn't realise.

fatbelly

Talk to stepchange.

If it's a problem, stop paying sc, save for a few months and then go the diy route

Actually Brie's suggestion is good - although there is no specific dmp marker on your file, the new lender should have seen a mixture of defaults and AP markers, and realised that further borrowing was not going to be affordable

https://debtcamel.co.uk/refunds-large-high-cost-loans/